Campbell Soup Affirms 2013 Outlook, To Strengthen Core Businesses

(RTTNews) - Campbell Soup Co. (CPB) on Wednesday affirmed its financial outlook for fiscal 2013 and said it will strengthen its core businesses. As part of its growth strategies, the company will focus on profitably growing its soup and simple meals business in North America, expanding its international presence and continuing to drive growth in snacks and healthy beverages.

For fiscal 2014, Campbell expects an improvement in the rate of organic sales and EBIT growth.

The Camden, New Jersey-based maker of ready-to-serve soups, pastas and sauces, said it will discuss the growth strategies and provide an update on plans for fiscal 2014 at a meeting with investors today, led by President and Chief Executive Officer Denise Morrison.

"We've made good progress in strengthening our core businesses, led by impressive advances in U.S. Soup. We are clear-eyed about our need to address some continuing challenges, particularly in U.S. Beverages. Our expansion into higher growth spaces is being propelled by innovation and external development transactions that represent very bold and deliberate moves for Campbell," Morrison said.

For fiscal 2013, Campbell Soup maintained its outlook for adjusted earnings per share to grow between 6 and 7 percent, to a range of $2.58 to $2.62. This compares to adjusted earnings of $2.44 per share in the previous year.

On average, nineteen analysts polled by Thomson Reuters expect the company to report earnings of $2.61 per share for fiscal 2013. Analysts' estimates typically exclude special items.

The company noted that the adjusted earnings for the year will benefit from a favorable tax rate and improvement in earnings before interest and taxes or EBIT.

Campbell Soup continues to expect sales growth for the full-year at the upper end of the 10 to 12 percent range and adjusted EBIT growth at the upper end of the 4 to 6 percent range. Analysts have a consensus revenue estimate for the year of $8.59 billion.

The full-year guidance includes the estimated impact of the Bolthouse Farms business, but excludes the impact of acquisition transaction costs and restructuring charges.

In August 2012, Campbell Soup completed the acquisition of food and beverage company Bolthouse Farms from a fund managed by private equity firm Madison Dearborn Partners, LLC for $1.55 billion in cash.

In fiscal 2013, Campbell continues to expect Bolthouse Farms to contribute about $750 million to sales and add about $0.06 to adjusted earnings per share, including the impact of the suspension of Campbell's strategic share repurchase program.

In fiscal 2014, the company foresees solid performance in U.S. Simple Meals, led by the launch of new products and line extensions, growth in premium soups, increased breakthrough innovation and better availability for many of its products. The company also expects organic sales to benefit from strong growth in the Bolthouse Farms portfolio.

Campbell noted that guidance for fiscal 2014 will include the impact of recent acquisitions, including an acquisition that has not yet closed. The outlook will also be affected by significant currency movements and a 53rd week in the fourth quarter. Additionally, the company will be cycling an unusually low tax rate from fiscal 2013.

The company plans to provide fiscal 2014 guidance when it reports fourth-quarter results on August 29, 2013. Analysts currently expect the company to earn $2.74 per share for the year.

In Wednesday's regular trading session, CPB is trading at $46.62, down $0.71 or 1.49 percent on a volume of 334,810 shares.